Tencent-backed China Literature falls most in 4 months on weak results

China Literature

16/08/2022 05:20

** Shares of online literature and intellectual property
(IP) incubation platform operator China Literature Ltd  0772.HK 
fall as much as 12.7% to HK$27.80, the biggest daily pct drop
since March 15, if losses hold
    ** Stock sinks to the lowest since March 18, and on course
to snap three consecutive sessions of gains; the biggest
percentage decliner in Hang Seng Tech Index  .HSTECH  and
third-biggest pct loser in Hang Seng Composite Index  .HSCI  
    ** Tencent-backed company says its H1 net profit dropped
78.5% year-on-year to 228.5 mln yuan ($33.7 mln) with revenue
falling 5.9% year-on-year to 4.09 bln yuan   urn:newsml:reuters.com:*:nFWN2ZR017
    ** Jefferies maintains "buy" rating on China Literature but
trims PT to HK$51.90 from HK$68.60, saying total 1H revenue
below consensus while it estimates the firm's online business to
remain largely stable in 2H with IP operations to remain
resilient
    ** Nomura maintains "buy" saying 1H margins beat but topline
missed
    ** Shares of Tencent  0700.HK  slip 0.3% 
    ** Hang Seng Commerce & Industry Index  .HSNC  slips 0.1%
while Hang Seng Tech Index  .HSTECH , Hang Seng Composite Index
 .HSCI  and Hang Seng Index  .HSI  each gains 0.1%
    ** As of last close, the stock of Shanghai-based China
Literature had fallen 35% this year
($1 = 6.7843 Chinese yuan)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))